For the second consecutive year, more than 1 billion units of food, drugs, medical devices, automobiles and consumer products were recalled in the United States, according to Sedgwick's latest state of the nation recall index report.
"The year ahead will likely be characterized by the same strict regulatory enforcement that all industries saw in 2022," says Chris Harvey, Sedgwick VP of brand protection. "Regulators have now fully returned to pre-pandemic levels of activity and are making up for lost time with a steady slate of long awaited guidelines and modernizations to existing regulations. Businesses will face the tough challenge of remaining agile with their operations to accommodate new regulations, while simultaneously anticipating and preparing for potential economic and geopolitical issues."
From PR Newswire:
- 2022 was a record-breaking year for the number of units recalled, reaching nearly 1.5 billion. With regulatory scrutiny continuing to increase, 2023 may shape up to be another 1 billion unit year.
- Automotive recalls decreased 12.6% in 2022 compared to 2021. The sector also experienced a 10.3% decline in the number of units recalled, marking a nine-year low.
- While the number of consumer product recalls increased by nearly one-third (31.2%) in 2022 over 2021, the number of units recalled almost halved (45.4%), from 42.8 million in 2021 to 23.4 million in 2022.
- FDA food recalls experienced a 700.6% increase in the number of units impacted in 2022. With 416.9 million units recalled, this represents a 10-year high.
- While pharmaceutical recall events fell by one-third (32.5%) in 2022, the number of impacted units recalled more than doubled (114.4%) to 567.3 million. This marks a 10-year high for the industry.
- Electric vehicles (EVs) will remain a key focus for the automotive industry, regulators and lawmakers in 2023. Manufacturers may also find their vehicle's "smart features" the target of new regulations.
- The consumer product industry will likely see continued strict regulatory enforcement from the Consumer Product Safety Commission (CPSC) in 2023.
- 2023 will bring new uncertainties for the food and beverage industry, as the Food and Drug Administration (FDA) announced plans to overhaul the food side of the agency and place food policy and regulation under one deputy commissioner.